Alpha HPA (ASX: $A4N) takes final investment decision for HPA First Project Stage 2

Alpha HPA Limited (Alpha or the Company) (ASX: $A4N) has taken a Final Investment Decision (FID) in respect of Stage 2 of the HPA First Project (Stage 2), supported by compelling Definitive Feasibility Study (DFS) outcomes and credit approval for A$320 million in project debt and an A$80 million cost overrun facility from Government agencies, the Northern Australia Infrastructure Facility (NAIF) and Export Finance Australia (EFA). The Stage 2 DFS and FID build upon an extensive 4+ year product marketing campaign to over 200 end-users and parallel product development effort, successful construction, commissioning and 16+ months of operation of Stage 1 of the HPA First Project, and a comprehensive re-design and re-engineering (since 2020) of the Stage 2 facility to capture process refinements, expanded product range capability as well as key customer requirements.

Alpha HPA (ASX: $A4N) Managing Director's Commentary

This decision to proceed with the commercialisation of Stage 2 of the HPA First Project and the successful project financing represents a major step-change in our business growth. We are delighted to have received comprehensive financing support from the Australian Government and from new and existing shareholders. The feasibility study and financing represent a comprehensive endorsement of the Company's technology and business strategy and allows for Alpha to establish Australia's first, large scale commercial capability to manufacture high purity aluminas and related products to support key high technology growth sectors and the global energy transition.

Summary of HPA First Project Stage 2

The Definitive Feasibility Study (DFS) for Stage 2 of the HPA First Project has concluded, highlighting compelling project economics and annual Stage 2 production capacity of 10,430t with an optimised product mix. The Final Investment Decision (FID) has been taken, with project execution to commence immediately, targeting first production for 1H FY27. The project financing includes credit approved A$320M facility secured from NAIF and EFA, fully underwritten institutional placement of A$120M, non-underwritten share purchase plan, and government grants totalling A$66.7M. Alpha aims to establish itself as a leading supplier of high-performance, specialty materials to global technology markets including the semiconductor, lithium-ion, and LED lighting sectors. The Company is also progressing to fully fund the HPA First Project Stage 2 through alternative and non-dilutive financing arrangements from various parties.